Mergers, acquisitions and changes to legal status

In a merger, acquisition or change to legal status, a provider could be dissolved or the process could lead to the creation of a new legal entity.

Any provider that is dissolved will need to voluntarily deregister with the OfS. If a new legal entity requires the benefits of registration, it needs to apply to register. This is a different process to our assessment of a merger and involves assessing the new provider against the current initial conditions of registration in force. The current timeframes for this process are set out in regulatory advice 3.

Providers should identify any external organisations that need early notice of the change (for example, student finance bodies and awarding or data partners).

Explain clearly which bodies will be registered or recognised, what will change when the merger completes, and what will happen during any handover period.

If any provider involved can award degrees, check early how those powers will work after the merger. A change in legal status or ownership can affect whether the powers still apply.

If the merger creates a new legal organisation, that new organisation will usually need to apply for degree awarding powers through the standard process. Degree awarding powers cannot be transferred from one provider to another.

If any provider has the right to university title, agree early how their name will be used after the merger completes and confirm what permissions are needed to agree any changes. Some changes will need permission from the Department for Education, and some changes will require a consultation process.

If a provider creates a new legal organisation, the title will not carry over automatically and it may need to apply through the standard university title process.

Providers with an access and participation plan should contact the OfS to confirm whether the merger means it will need a new or updated plan, including consideration of how fees and commitments will work.

Providers with an access and participation statement should check whether it needs updating to reflect what will be true after the merger. In most cases a provider can publish updates as part of its usual review cycle.

A merger can change what a provider delivers – for example, its courses, the qualifications it awards, modes of study, teaching locations and facilities, terms and conditions, or which organisation teaches students. Where this happens, we would expect a provider to comply with its obligations under consumer law as well as its regulatory obligations.

As a minimum this means a provider must:

• communicate these changes to students that have accepted an offer, as well as those currently studying
• engage with students and offer support and suitable alternative options and compensation if appropriate
• reflects any changes made to what it delivers in its marketing materials and the information provided to those with an interest in studying at the provider.

If a provider closes or dissolves and transfers students to a different entity or provider, the lead or new provider is responsible for delivering any promises that were made to students.

If changes affect current students (for example, a course change or closure), a provider may also need to:

• inform us of reportable events where student or consumer protection measures are impacted
• update its risk assessment in its student protection plan (or explain why no update is needed).

Providers may need to provide an updated description of how its organisation is run to show there will still be clear decision making and effective oversight.

If the merger changes a provider’s accountable officer, it should report that separately.

If a provider closes or deregisters, we may remove the provider’s access to the OfS online portal once the merger completes.

Download and store any records you will need to keep and raise any access problems early.

Data returns usually reflect the situation during the period the data covers. If providers were separate for a full academic year, they would normally submit separate returns for that year.

If the merger happens partway through a year, we will usually agree the approach on a case by case based on the completion date and the data collection deadline.

We will consider how we handle data from one provider merging with another on a case-by-case basis. Usually, we would expect to merge the data from the lead and dissolving providers together.

If providers receive grant funding, they should confirm how payments should be made after the merger (for example, updated bank details) and share stable information as early as possible.

Be aware that some funding totals may change because they depend on thresholds and weightings, and any past reconciliations or repayments may carry over to the continuing provider.

We may ask you to confirm that the merged provider can still meet the funding terms and information requirements for the relevant year.

If a provider closes as part of a merger, its former students may still need to be included in graduate outcomes or alumni surveys.

The continuing provider may be responsible for keeping contact details accurate and helping the survey process run smoothly.

If a provider delivers higher education through a partner (for example, subcontracted, franchised, or similar arrangements), it should update contracts so they name the correct legal organisation after the merger and make responsibilities clear.

If the provider runs courses that another body validates, it should check what approvals it needs from the partner to continue delivery after completion. Throughout any renegotiation, the provider must protect the interests of current and new students.

After the merger completes, we will confirm how any Teaching Excellence Framework (TEF) awards will be recorded for the merged provider.

In some cases an award may be linked to the continuing provider, but this depends on how the merger is structured.

Keep your course information submissions up to date so any published information stays accurate during and after the merger.